Demand of Fertilizer in Least Developed Countries (LDCs)

Asma’ Rashidah Idris, Noorazlina Ahmad

Abstract


This study is attempt to examine the factors affecting demand of fertilizer in three selected least developed countries (LDCs); Myanmar, Lesotho and Tanzania by using Ordinary Least Square (OLS) method. The theory of demand function has been applied to the analysis and the model has been transformed to log form for estimation purposes. Several tests have been conducted to detect multicollinearity, autocorrelation and heteroscedasticity. The finding reveals that cereal yield is statistically significant for all countries while price is only statistically significant for Lesotho. It is expected more robust result could be evidenced using larger data set, adding more variables and using other proxies for the variables.


Keywords


Fertilizer demand; LDCs; Ordinary Least Square (OLS); Multicollinearity; Autocorrelation and heteroscedasticity

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DOI: http://dx.doi.org/10.3968%2F4045

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